Gold Rolls Over After Breaking Key Level

| About: SPDR Gold (GLD)

By Tim Seymour

Gold rolls over – talk about a key level – $1,532 breached and then we went straight to 1,500. Gold had bounced a handful of times at $1,530-$1,538 since the downtrend began in 2011, but clearly today’s move through this support was done so with fervor.

Folks, this is a deflation tale and it’s not easy to break. Other things affecting gold and what traders are talking about are:

1) Gold volume was being bottom hard yesterday afternoon in advance of this move but after watching how quickly gold broke $1,550

2) Bank of Japan’s quantitative easing should have delivered much more support to gold and failure therefore is more pronounced… bounce

3) But the quantitative easing in the U.S. will be on the decline – see FOMC comments

4) Liquidation selling has not started.